It's 2025, and the global stage has shifted dramatically. Yet, some nations continue to rely on outdated strategies, believing that threats of tariffs and sanctions can still sway international dynamics.
On his first day in office, newly sworn-in U.S. President Donald Trump threatened to impose a 100 percent tariff on BRICS nations if they persist in their de-dollarization efforts. \"As a BRICS nation… they'll have a 100 percent tariff if they so much as even think about doing what they thought, and therefore they'll give it up immediately,\" he declared.
In response, the Chinese Ministry of Foreign Affairs emphasized that BRICS is not about confrontation but fostering cooperation and shared prosperity. The world is increasingly resistant to one-currency dominance and sanction-fueled pressure.
Take Russia, for example. When faced with a barrage of Western sanctions in 2014 and 2022, many predicted economic collapse. Instead, Russia developed its own financial systems. The introduction of the System for Transfer of Financial Messages (SPFS) provided a homegrown alternative to SWIFT, and the Mir payment card system now fulfills the role once dominated by Visa and Mastercard. These initiatives not only insulated the Russian economy but also strengthened financial ties with non-Western allies like Türkiye, Kazakhstan, and nations in the Middle East, reducing dependency on Western financial systems.
Similarly, when the U.S. restricted Türkiye's access to technology and equipment, including F-35 jets and armed unmanned aerial vehicles, Türkiye invested in domestic production. The nation now manufactures its own equipment and has begun exporting to Middle Eastern and African countries.
Russia and Türkiye's resilience highlights a global shift. More nations are seeking a more equitable world order. The G20 Summit in Brazil last year marked a historic moment with the African Union attending as a full member for the first time, signaling a new vision for international cooperation.
BRICS nations are also redefining global trade by turning to their own currencies for commerce, reducing reliance on the U.S. dollar. Brazil and China now trade in their national currencies, a practice mirrored by India and its regional partners. The BRICS New Development Bank has intensified efforts to finance projects in local currencies, offering an alternative to Western financial institutions. Moreover, BRICS is working on developing its own blockchain-based payment system, further diversifying global financial infrastructure.
This movement isn't about making a political statement; it's rooted in pragmatism. The world has witnessed the vulnerabilities of a dollar-dominated system, with crises like the 2008 financial meltdown and the pandemic-induced global recession affecting economies worldwide. Over-reliance on a single currency has proven to be a risky proposition.
As the global landscape continues to evolve, it's clear that threats, sanctions, and one-currency dominance are losing their effectiveness. Nations are forging new paths toward cooperation, resilience, and a more balanced international order.
Reference(s):
Why threats, sanctions and one-currency dominance are past their prime
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